The trial balance includes a list of the totals of all general ledger accounts. It contains all the debit and credit balances. Also read:... View Article
Trial balance is used to prepare to ensure that entries in a bookkeeping system are arithmetically correct. Also read: MCQs on Trial Balance... View Article
Depreciation is a contra asset account. Also read: True and False Questions on Depreciation What Is Depreciation MCQs on Depreciation What... View Article
Depreciation is an asset or more specifically contra asset. Contra assets are negative assets that reduce the value of other accounts. Also... View Article
The simplest method of depreciation is the straight-line depreciation method. Also read: True and False Questions on Depreciation What Is... View Article
The other name for the reducing balance method is called the written down value method. Also read: True and False Questions on Depreciation... View Article
In the straight-line method of calculating depreciation, a fixed amount is depreciated in every accounting period, while in the written down... View Article
Obsolescence is referred to as the state of becoming obsolete. It is applied in the case of fixed assets in accounting which become obsolete at... View Article
Salvage value is referred to as the estimated value of an asset at the end of its useful life on which it can be resold. Or it can be said as the... View Article
Goodwill is an intangible asset. For intangible assets, amortisation is used instead of depreciation. Also read: True and False Questions on... View Article
Written down value method of calculating depreciation is Written Down Value Method = (Cost of Asset – Salvage Value of the Asset) * Rate... View Article
The three methods of depreciation are: Straight Line Method Written Down Value Method Units of production method As per the syllabus of... View Article
Written down value method is also known as the reducing balance method. It has the following limitations. 1.The assets cannot be completely... View Article
Companies use the straight line method as it is easier to use and results in fewer errors over the life of the asset. It is also the most... View Article
Straight line method is easier to use while the reducing balance method is comparatively more accurate but more complicated among the two... View Article
The straight line method has the following limitations: It does not consider the loss of interest received for the amount invested in the... View Article
